Mustang Minerals Corp.
TSX VENTURE : MUM
FRANKFURT : NJF

Mustang Minerals Corp.

December 12, 2007 12:49 ET

Mustang Exploration Funding

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2007) - Mustang Minerals Corp. (TSX VENTURE:MUM)(FRANKFURT:NJF) today announced it is arranging a non-brokered private placement financing for the sale of up to 3.0 million flow-through common shares at $0.65 per share and 1,000,000 non-flow through shares at $0.60 cents per share for a total of $2,550,000 in total private placement financing. The financing is subject to regulatory approval. The funds will be used to explore the Companys' properties primarily in Manitoba and in the case of the non-flow through shares for working capital purposes.

The Company may pay finder's fees in the event qualified agents are used to source subscriptions which fees will be equal to up to 6 per cent of the gross proceeds as a result of the efforts of such agents.

Mustang is currently completing a National Instrument 43-101 compliant prefeasibility study on the Maskwa Nickel Project located in southeastern Manitoba. The Company is currently drilling in the Maskwa project area and a regional exploration program is planned in southeastern Manitoba in 2008.

Exploration Update

Drilling is proceeding at the Maskwa North Horizon. Two holes have been completed spaced 200 meters apart. A zone of disseminated mineralization has been intersected in each hole with varying amounts of chalcopyrite, sphalerite, pyrrhotite, pyrite and arsenopyrite. Mineralization is located at a sheared peridotite volcanic contact and a granite ultramafic contact. The zone of mineralization has been intersected between 600-725 ft downhole in the two holes. The initial phase of the drill program will test the Maskwa North horizon along a 1,000 meters strike length approximately parallel to the proposed pit shell for the Maskwa Deposit.

Carey Galeschuk P.Geo is the Qualified Person for Mustang Minerals Corp.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the year ended December 31, 2006 and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 68,893,760

The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this press release.

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